British Steel chief executive Gerald Reichmann has left the company as exclusive talks continue between the Official Receiver and the preferred bidder over the sale of the Scunthorpe-based business.

Turkish investment firm Ataer Holdings is looking to buy the manufacturing giant out of compulsory liquidation and is currently working through a due dilligence process.

It is understood it was agreed with Mr Reichmann that having assisted with getting British Steel into a stable position and identifying a preferred buyer, this is the "appropriate juncture" for him to leave and pursue his career elsewhere.

Ataer has confirmed "that this does not in any way change their interest" in British Steel.

The Official Receiver's spokesperson said: "The Official Receiver is assisting the preferred bidder for British Steel to complete their due diligence and confirm its sale. The departure of the chief executive does not impact upon this process."

Mr Reichmann arrived in Scunthorpe as chief financial officer in 2017, adding the deputy chief executive role when Paul Martin retired last year.

Gerald Reichmann with Business Secretary Andrea Leadsom during her visit to Scunthorpe's steelworks in July (Image: David Haber/scunthorpelive)

He became chief executive in April, just a month prior to the High Court hearing that saw debts of £880 million revealed and special managers appointed by the Official Reciever to join the leadership team in North Lincolnshire as efforts to sell the business as a going concern began.

Mr Reichmann has joined TopHat, a UK-leading technology-driven modular housing manufacturer based in London and Derbyshire, as chief financial officer.

The post-Tata era began for British Steel in June 2016 with Roland Junck quickly appointed as executive chairman from an advisory role with buyer Greybull.

Talks are continuing between the Government and Ataer Holdings over the sale of the Scunthorpe steelworks (Image: David Haber/scunthorpelive)

A nine-month search for a chief executive brought Peter Bernscher to the company but he spent just seven months at the helm, with Mr Junck, the first-ever chief executive of Europe’s biggest steel producer ArcelorMittal and later CEO for Nyrstar, a major global zinc producer, resuming the role of executive chairman.

Mr Reichmann joined in 2017 from Austrian firm Voestelpine Wire Technology, having worked in the metal and steel industry throughout his career.

The majority of those employees at the headquarters site in Scunthorpe, with further manufacturing in Skinningrove and Lackenby in the North East, internationally in France and Holland, as well as global sales and service depots.